The research objectives are to estimate the impacts of the out-of-pocket prices of informal caregivers time, nursing home service, and formal community-based services on choices of service used to produce long-term care; and to determine the extent of which differences in these out-of- pocket prices faced by black and white families explain observed racial differences in the mix of services used. Priced differences are posited to result from differences in potential wage rates of informal caregivers, and spend-down rates given asset ownership and Medicaid eligibility rules. Data are from the 1982-1993 National Long Term Care Surveys, Current Population Surveys, and the 1985 National Nursing Home Survey. The analysis builds on my work and will be conducted at NCSU under the sponsorship of Robert L. Clark, Ph.D.. Consultation on using CPS data to estimate wage equations will be provided by Dr. Steven G. Allen who collaborates with Dr. Clark. Guidance from Dr. Kenneth G. Manton and Dr. Max A. Woodbury of Duke University Center for Demographic Studies will be provided in preparing NLTCS longitudinal files linked to Medicare Part A and B files, construction multidimensional indices of health and functioning, nonlinear statistical estimation, and incorporating the 500 additional blacks who will supplement the 1993 NLTCS.